those pockets have one quality in common, execution. when i speak about execution, what i mean is some companies are winning even as others faced with similar circumstances are losing. >> sell, sell, sell! >> there are enough winners to keep the balls in the air and the bears at bay. and those winners are triumphing because they're doing a better job in their day-to-day business than the losers. the ceos are better, the

companies are better. hey, it's just like sports teams. some guys make the playoffs, a lot of them don't. the best way to understand this execution issue is by pitting individual companies in the same sector against each other. last night, we spoke to chuck bunch, he's that terrific ceo of ppg, the old pittsburgh plate glass who happened to come on the same day that dupont reported the benchmark of bad quarters. i mentioned ppg's old monicker because it's how bunch figured out that it might be a prescription for failure in a world where commerce is global. and a ton of companies overseas have lower costs because the labor is cheaper and they can pollute the heck out of the air and water in their home countries without any retribution. we can't do that in this country. so ppg switched aggressively to chemicals that require ingenuity, research, brain power, and technology to manufacture, including high-performance chemicals for aerospace, luxury autos and

architectural coatings. they develop glass that can change colors, that turn into sunglasses when you step outside. i love mine. we all know that the german automakers create superior cars. do you know they turned to ppg for their superior coatings? that's why it was no surprise they decided to offload the last bit of commodity exposure for about $2 billion over the summer. no vestige of the low-end businesses that boom or crash with the cyclical winds. he can't add any value, no value added to those kinds of run-of-the-mill goods. let's take dupont, which was down again today after a $4.50 beatdown yesterday. that's a lot of points to shed. here's a company that's getting out of the commodity business too like auto materials and moving into life sciences, agriculture and safety. but we discovered with tuesday's earnings report that dupont is

not doing it with alacrity. it's reliant on titanium dioxide. that's a plain old whitener. well, dupont failed on a whole host of items. tio2 was the achilles heel behind the shortfall. since this chemical has been glutted overnight and there's no way dupont can add any value. turns out dupont's more of a commodity chemical company wolf in proprietary sheep's clothing than anyone thought, including me because, sadly, my charitable trust owns the darn stock. and that's why ppg's up 40% for the year. while dupont's stock is down about 2%. or how about restaurants? we keep hearing about all these problems in the industry. >> the house of pain. >> last night we heard from buffalo wild wings. showed a fairly dramatic slowing in the same-store sales. the week before we listened to a disappointing chipotle conference call where we learned

same store sales growth had gone from 12% to 8% two quarters ago, now around 4%. based on these losers, you would think the restaurant must be stung by a tectonic shift where people stopped going out to eat, cooking their own wings and stuffing their own burritos. then you get the report that panera bread delivered last night. >> house of pleasure. >> they're in the same business as chipotle and buffalo wild wings, purveyors of finer food, although bwld has liquor. not that i would know. the panera numbers are showing a strengthening, not a weakening, running 6% to 7% in growth. they're doing it as they're putting in price increases, price hikes that the vast majority of other restaurants can't afford to put through. why are they able to do this? as the chairman, co-ceo and co-founder told us this morning on "squawk on the street," it's

the experience. panera makes it fun to go out because it keeps changing its menu, comes up with cool ideas, makes it entertaining. you should have seen the way the eyes lit up for the five kids i took to the brookline panera this weekend. they took turns ordering special meals. you would have thought i brought them to a three-star michelin restaurant for heaven sake. that's execution. no wonder chipotle's down 28%, buffalo wild wings still up, though down overnight. and panera up, the best performer in the group over the last two, five, and ten-year periods. how important is the secret sauce ingredient that is execution? all right. let me give you another example. could there by any industry more alike than the railroads? no, except when it comes to the earnings. last week union pacific reported a perfect quarter, analysts raised numbers, nice rise, up about 14% year-to-date, they ship coal. this morning we heard from norfolk southern, they ship coal

and the darn things run right off the rails. despite having guided down earlier this year, norfolk southern took the numbers down again and it was a truly hideous call. i had to, you know, like when you hear something bad. its stock is down 16% for the year. the difference between union pacific and norfolk southern, execution, execution and execution. finally honeywell and 3m, global industrials, pride themselves in developing new products. when honeywell reported its numbers the company boosted outlook courtesy of inroads it's made in aerospace, refining and earnings efficiency. these are the seeds that dave cote keeps planting, paying off. 3m slashed the forecast based on uncertainty about 2013. honeywell wasn't certain either, but it wasn't going to let the uncertainty spoil the earnings or forecasting party. here's the bottom line, you bet earnings season has been

disappointing. a true mine field! it's absolutely true this has been one of the hardest periods to navigate in three years. it isn't all done in foul weather. there are still winners out there because some companies are simply executing a heck of a lot better than others. it's my job to find them for you during this moment of malaise where you may think nothing seems to be working right and nobody can make you money. brendan in washington, d.c., brendan? >> caller: boo-yah, jim, this is brendan calling from the nation's capital down in washington, d.c. >> well, i'm picking up hankerson. garcon is probably not going to play. >> caller: hey, i wanted to ask you about amazon today. with the recent release of poor earnings and amazon increasing their presence in the video streaming market, do you see amazon going higher? >> amazon, there was a guy down -- guy cut numbers today on amazon and that's all we need is a high-profile blow-up on amazon. i don't want to trade it here, i

don't want to buy it. let's let the others make money if there is money to be made and i'm not so sure about that. darren in minnesota. >> caller: hey, appreciate the time. how are you doing? >> real good. how about you? >> caller: not too bad. i want to talk to you about a spec stock. it's an airline company, u.s. airways, they had some good earnings today. but more importantly, my speculation, i want to play this on the american airlines deal. do you think that's a smart way to spin the stock? >> i had said -- i had said on this show if i had to buy an airline stock i'd buy that one because i think they'll be able to steal amr, but oil has hit a couple of month low, i don't trust oil to stay lower, when it starts going back to $90, you're going to give up some of that gain. i say cha-ching cha-ching. doug in new york, doug? >> caller: jim, big buffalo boo-yah too ya, sir. >> what's going on?

i got fitzpatrick. what's going on? >> my stock, it flat lined about a year since i owned it. i really don't know what to do with the stock. do i sell? >> i was talking to the fabulous kelly evans this morning on "squawk on the street" and i said corning can't get it right. they've got the gorilla glass, the greatest technology in the world, they look good in the steve jobs book, and i've got to tell you something, no, no, corning, too hard to own. i'm taking another call. i'm going to jason in maryland. jason? >> caller: boo-yah from baltimore, jim. >> oh, man. ravens country, what's up? >> caller: question is on regions financial, the stock got hammered. is the stock, has it bottomed, will it start to rebound and will it get anywhere close to the $8 target that it's tagged at? >> you know, raymond james cut that target today. i don't like regions financial, i like huntington bank shares

and even better than that actionalertsplus.com, my charitable trust, stephanie link and i for the trust have been buying key, which is the cheapest of all. i hope ray lewis gets better. i'd love to see him back in the playoffs. sure the earnings season has been disappointing, but it doesn't mean we can't find some winners among the losers. that's what i'm here for, to help you separate the good from the bad and, of course, from the really dupont ugly. let's do it together. "mad money" will be right back. coming up -- brand equity? as the holiday season nears, one of jarden's 100-plus household names could wind up under your christmas tree. but should they be your stocking stuffer? cramer's earnings exclusive with its ceo is next. and later -- facebook flies, after reporting a better than expected quarter, shares of the social giant soared over 20%. is it too late to like? or is this just the start of a

good news feed? stick around, cramer's posting a status update. plus, public health, nps pharmaceuticals got a shot in the arm after investors bid up shares of the company ahead of an fda panel meeting. plus, since then, it's experienced a painful pullback. cramer's sitting down with its ceo and issuing his prognosis just ahead. all coming up on "mad money."

in the midst of the horrific pounding the market took yesterday, remember, there's one big silver lining, numbers of consumer oriented stocks did well, pretty well, coach, whirlpool, harley davidson all shooting higher despite the

averages. the action yesterday sent a signal confirming that the american consumer is doing better than you think. and if that's the case, i want to circle back to jarden, jah, the incredibly consistent pastiche of a company that makes coleman, mr. coffee machines, blenders, toasters, and among many other brands, over 100, in fact, not all domestic, but that's where we see the stuff. jarden put together a terrific long-term track record by being the market leader in dozens of niche categories. darden reported yesterday. earnings coming in at $1.35 a share, four cent beat in line with revenues, none of the doom and gloom i've seen in recent quarters. jarden has doubled since getting behind it in 2009. even with these gains, the stock is still cheap, sells for 11 times earnings even though it's incredibly consistent. let's check in with martin franklin, chairman of jarden corp. to find out more about the company's prospects.

welcome back to "mad money." >> thank you. >> good to see you, martin. i have spent a lot of time with you talking about how you have taken over aisle space, you're the low-cost producer, i have not talked enough about something that was evident from this conference call. which is brand innovation, product innovation, research and development. that it isn't just because you come in and make different color product you get more space, you're doing different things. and the thing that caught my eye in your barclays back to school, something i'm glad you brought, you decided to take something ugly in your house and make it just as useful but make it good looking. i'll give you the floor on this. it's really emblematic of what jarden does. >> i brought this up because it's a new product that's not on the market, that will be on the market in january. we call this the first alert atom. it's a smoke detector. go up on the ceiling of your rooms. it's far more aesthetically pleasing. >> i hate that white thing, man. >> they don't have to be white

and they don't have to be that large and they can be safe and functional. this is a very exciting new product. >> okay. is that -- >> look for that in january. >> there are a lot of things i know that are also r & d. there was an article yesterday in "new york times" about concussions. >> yep. >> on football. >> yep. >> you are a football helmet maker. >> yes. >> you're using r & d to make that safe. how is that going? >> it's going very well. we started this business, greenfield, rawlings, many, many years ago, there's a long history and heritage of the brand. was in the football helmet business. but they've long since stopped being in the business, they've reentered the market about a year ago on the back of some very significant r & d and a close collaboration with a few independent institutions, institutes rather, doing research. and we came up with a unique product that we thought was superior in performance and have been very successful in the market launching it. it's growing very rapidly, beaten all of our expectations, we expect it to continue to grow. but in general, we spend about -- it's about $1 million a day on what we call brand investment. >> $1 million a day?

>> $365 million a year, so it's about $1 million a day. and, you know, basically it's -- that's both investment on new products for the business, they could be replacements for existing products. >> right. >> but new products and then promoting those products in the marketplace. that's what we call brand investment. >> david faber and i were talking off camera on the "squawk on the street" show. we're both avid followers of yours, including your iron man. you have always had an understanding of the outdoors. >> yeah. >> that is playing out incredibly well with your company. >> yeah. >> i have to regard you now as the number one outdoor company. is that because something you saw? no one saw this coming other than cabela's, some dick's, and you. >> well, i can't speak for them, they've done a great job, we've always thought the outdoors had great potential and has

long-term potential for really international markets, not just the united states. and you're right, we are the largest player in equipment for the sporting goods world. there are obviously big companies like nike that are the biggest in soft goods. we've chosen to be real experts, we've got some good soft goods businesses too. but we've been the leader in focusing on the disciplines of the hard goods market. we've continued to invest in a period when a lot of other companies have not invested, like in the ski industry, not a lot of snow last year. cost people revenues like it has us, but we have not held back on our investment, and we're making a big investment in asia, in new outdoor manufacturing capabilities. >> mm-hmm. >> state of the art plants that will last us for the next 10 to 15 years, we are looking at this business for the long-term. >> one of the things you've done successfully, most haven't, is you said, listen, i'm fed up with my stock price, it's not reflecting the greatness. and you did a -- i'm going to ask you to describe it.

i had scott mcgregor from broadcom on today. they reported a great number, the stock went down. that's a kind of market where you decided that you couldn't take it anymore. describe the viewers what you did and the success of it. >> well, look, i think part of our job, my job is overseeing the direction business strategically. what's the highest and best use of your capital? and we saw and continue to see historically low rates. looks like they're going to be that way for a while, interest rates. where we pushed our balance sheet out long and really didn't feel like we were getting rewarded for the fact that we've built up this huge liquidity and significant cash flow before any payments were due to be made. so we had a few choices that we thought the highest and best use of capital was simply to buy back our own stock. >> not in the traditional manner where you sat underneath and hoped the sellers came in. >> there are so many restrictions on buying stock

daily in a regular repurchase program. people make these large announcements. we're going to do a big repurchase program and then do nothing. >> thank you for saying that. they don't. >> we chose to make a statement, there are 5,000 plus stocks for people to choose from. why buy ours? like any other product, we have to fight for attention. and i think this got people's attention. >> this was the big tender offer for -- >> we did a dutch tender for $500 million, ended up getting $435 million worth of stock, then bought another $100 million when we did the convertible debt deal, and, you know, for us it's -- well, it's had a great reaction, but as you said yourself at the beginning of this piece, you know, our stock still trades at 11%. >> so you could do another one. >> we will continue driving, we think as long as we're generating the cash flows we are and not finding alternative investments, acquisitions for us that create better value, we'll keep buying our own stock. >> i'm glad, though. you're a man of great conviction about your company. that's why we've been behind you

almost since the day we started this show. >> we appreciate that. >> thank you so much to martin franklin, executive chairman of jarden corp. you know the products. it's jarden's business and they're also in the business of generating a terrific return for you. stay with cramer. coming up -- facebook flies. after reporting a better than expected quarter, shares of the social giant soared over 20%. is it too late to like? or is this just the start of a good news feed? stick around, cramer's posting a status update. hmm, it says here that cheerios helps lower cholesterol

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who the heck would've thought that facebook could nearly save this market today? tall order after yesterday's shellacking. reported a truly tremendous quarter last night. and followed it up with the single best conference call of the whole fall season. ♪ hallelujah saved by facebook. only someone with an out of control imagination could've seen this coming. here's a company that by its own admission hasn't done much at all on mobile up until the beginning of the year. the company threw mark zuckerberg, who did an amazing job on the conference call, stated point blank, we hadn't started trying yet when the year began, but now 14% of the business is mobile ad spend,

could double fairly easily as they roll out the instagram acquisition which just closed. you know what really stood out on this call versus the previous one? the rationale for believing these guys are true capitalists who aren't just trying to build a social network but are building an actual business, a social-based advertising network that after initially being blind-sided by the mobile revolution is now one step ahead of it. facebook caught up so quickly, now you have to wonder if the short selling ahead of the november lock-up expiration to hedge any gains might be overdone. could that be behind a lot of the raise today? and the actual deal which we know is going to happen could be, let's say, i don't know, right around here, not down at $19, $18, like a lot of people thought. i know it sounds preposterous, but when you listen to the conference call, certainly makes you want to own some facebook, that's why the stock was up so big. how about mark zuckerberg saying that not just users, but major

advertisers liked facebook's mobile application better than desk top because it's easier to reach people and more engagement than there is on desk top. zuckerberg had a ton of data to verify this bold claim because we're all so used to mobile not making as much money as desk top, including the fact that 40% of users are likely to access facebook on the desk top, 70% use it on mobile and the advertisers would rather see it on mobile. why wasn't this obvious before? because it wasn't happening. i got the sense that facebook switched to supporting the apple mobile operating system greatly hastened this move. and it's led to a real bonanza. remember the iphone, this is now supporting the iphone, which is intriguing everyone from are procter & gamble, walmart amazon, and capital one. maybe the latter's terrific quarter, capital one, could be pinned in part on their facebook campaign. the best bank quarter we've seen. how strong of a case did facebook make for a quarter on the call? let me put it this way, it would not surprise me to see gm back on facebook after that slap in the facebook ipo face the week

of the deal. that is if facebook will let them come back. i could see how facebook doesn't have to. reaching three times the targeted audience on the super bowl and they do that every single day. 70% of advertisers are saying they saw a three times return on investment for their ads, another bold claim i think facebook can back up easily since the company told a story of tremendous gains for samsung's phone through facebook advertising as 85% of those who saw the ads for samsung were more likely to buy the phone than not. tremendous return on investment. as good as the apple and mobile app can be, though, i can't imagine how strong the android presentation will soon be and facebook's just rolling that out. mobile is simply going their way. more than it is for google. finally, another nail in the coffin, the idea that zynga's declines can hurt facebook's future. gaming revenues are doing just fine, thank you. here's the bottom line, it was a remarkable quarter. the move in the stock up $3.71 or 19% today is justified. the only thing that surprised me was that no analyst said

congratulations on the call. i guess they were as stunned as i was about how quickly facebook's fortunes had turned, and the dream became a reality. after one good quarter. matt in illinois, please. matt? >> hey, jim, this is matt walsh calling from home of the first-place chicago bears. boo-yah. >> boo-yah, man. thank you for shutting down megatron, mega nothing as far as i'm concerned. >> caller: you got it, man. love the show. >> thank you. >> caller: i'm looking at millennial media, ticker mm, they were up about 10% today. curious, what are your thoughts about them moving forward? also with facebook, google, and the other tech giants having all these problems in the mobile advertising, do you see millennial as a potential takeover target? and who else? >> bingo. now, i would not recommend a stock as a takeover candidate if the fundamentals were bad, they

were good, did a very big secondary, people lapped it up. it was like when yelp did it and the stock took off. millennial media is the solution for one of these companies whether it be yahoo or google to be able to develop a mobile strategy that may be able to compete with what we now know is facebook's winning strategy. hold on to mm. good company. let's go to jamie in louisiana. jamie? >> caller: hey, jim, jamie from louisiana. just wanted to ask you about pandora. i hear they're in the news and they've got competition. should i keep it or sell it? >> no, i think you'll want to sell it. pandora's one of those that came public and they've got really good management, but in the end, there's nothing -- it feels like netflix to me, but netflix went up so much and crashed to earth. pandora's not even getting a chance to go up, just crashing to earth. it's not worth your time. don't waste your time on it.

let's go to v.j. in california. v.j.? >> caller: hey, boo-yah to ya, jim. how are you doing there? >> good day, v.j., how about you? >> caller: i'm doing good. i love your show. >> thank you. >> caller: i'm going to ask you a specific question. is this the time to be investing in yahoo, the sleeping giant? is this a buy, jim? >> yes! again, execution matters. this new ceo, she's got what yahoo -- needs a strategy. yahoo never lost the core viewing audience, but if you can get that thing on mobile, you get social going, that stock sees $20, i want you to own yahoo, don't trade it. ellie in california. >> caller: boo-yah, jim, how's it going? >> real fine. how about you? >> caller: good. thank you. i have a question in regards to the symbol cymi. the other company just acquired them last week and has gone up 60% since then and i feel like it's overbought. and i wanted to see what is your intake on that? >> i think you should ring the register. why?

we're not arbitrageurs on the show, people, the long-suffering shareholders of cymer have won. don't overstay your welcome. ring the register. take the money, go buy a sweater. is it finally time to like facebook? well, we learned that it's finally working the mobile scene. today's move makes sense. and fortune is now shining on facebook. don't move. the "lightning round" is next. i want to give you a black knight combat boo-yah to ya. >> big navy boo-yah, high-flying united states air force blue, blue boo-yah. >> i'm sending you a thank you back a thank you for serving, love the military. everybody calls from it. we've got to have them on the show. boo-yah back at you. >> this veterans day, "mad money" salutes those who defend our country's freedoms by helping to defend their financial futures. if you or someone in your family is proudly serving or has served

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the "lightning round" is sponsored by td ameritrade. >> it is time -- it is time for the "lightning round" on cramer's "mad money." say the name of the stock, i tell you whether to buy or sell. my staff prepares the graphics on the fly, play until this sound and then it's over. i'm going to start with elizabeth in florida. elizabeth? >> caller: hey, cramer. >> hey, elizabeth. >> caller: in august i purchased cummins, and since then it's taken a macro inspired nose dive with recent gains. so should i put my engines in neutral and coast into a long position? >> why don't you strap your hands -- that's bruce. never mind. oh, here's the view of cummins, you accept the pain you're going to have to take while china restarts its engines. stock i think could trade down three or four more and then you pull the trigger and average down. that doesn't hurt me to say

average down, i think it's the right thing to do. rick in new jersey. rick? >> caller: mega boo-yahs from south jersey, jim. >> oh, man! good to have you on the show. >> caller: american capital and its siblings have declined precipitously in recent weeks, i'm wondering if it has something to do with qe-3. thank you for all your hard work on our behalf, jim. >> thank you, i think agnc is safe. i know it's playing havoc. annaly, where mike farrell passed away, they've been doing a buyback. you know they used to be issuing a lot of stock, buy back, i think agnc is good, the dividend's going to be fine. doesn't mean it's going to be safe in the sense they might schnitzel it a little, but i think the return will be there. let's go to ashton in nevada. >> caller: big boo-yah to mr. cramer, how are you sir? >> real good. how are you, sir? >> caller: i'm fantastic. thank you so much for taking my

call. >> of course. >> caller: mr. cramer, i have bought hk almost four weeks ago and ever since it's unfortunately just keeps dropping. are you still optimistic about this stock? >> this is floyd wilson's company. floyd wilson's made a lot of money in the oil market, but as i say, for those who own heckman, magnum hunter, understand oil is going down. you need oil to shoot up through 100 to make a lot of money in this stock and it's not going that way right now. so be careful. accept the consequences like cummins, accept the consequences. now i want to go to chris in new jersey. chris? >> caller: yes, jim, boo-yah and how many more times, jim? >> huh? you got me. >> caller: i wanted to ask you about ford. >> oh, okay. ford, my friend doug kass, who writes for "real money pro" at

part of thestreet.com, he took a position in ford ahead of the conference call. which is tomorrow. ahead of the conference call. i think ford and domestic is doing well. i don't like ford latin america, don't like ford europe, they have to retrench in europe if they're going to do anything good. i'm neutral, but doug kass says buy. tom in delaware, tom? >> caller: hey, jim, big boo-yah from little delaware. >> delaware, i love. a lot of friends there, what's going on? >> caller: jim, i watch the show almost every night, 6:00 and 11:00, sometimes record it. i've learned a lot from you. >> thank you. >> caller: this stock costco has me bamboozled, the stock goes up, i bought it, tanked immediately. what's up? or should i say what's down with costco? >> can i say that's not an acceptable situation in this market? do you know that broadcom reported a beautiful quarter, got hammered, costco ran a great quarter then sold down, i told stephanie link from actionalertsplus.com, buy, buy, buy, we should be buying costco

for the trust right here. and that, ladies and gentlemen, is the conclusion of the "lightning round." >> the "lightning round" is sponsored by td ameritrade. coming up -- public health? nps pharmaceuticals got a shot in the arm after investors bid up shares of the company ahead of an fda panel meeting. but since then, it's experienced a painful pullback. cramer's sitting down with its ceo and issuing his prognosis ceo and issuing his prognosis just ahead. loves risk.

when you speculate on small biotech stocks that are going for the fda, it's easy to get burned. and that's something we saw yesterday. we talked with that isis pharmaceutical ceo, a company that got raked over the coals when the fda panel reviewing their biggest drug candidate went over potential safety risks that came from left field. but there's a reason we play with these high-risk stocks because when things go right, they can produce tremendous

gains. take nps pharmaceuticals. here's an orphan drug developer, and we love orphan drug developers. i recommended nps on september 18th at $8.24. the company had a catalyst coming, the company's drug for short bowel syndrome, where they absorb nutrients through their intestines, and that was coming up on a panel on october 16th. and it looked like the fda would decide whether or not to approve the drug by the end of december. before we heard the results of the panel, nps spiked up $10.84 on october 12th, that gave us a 31% gain, told you to ring the register because anything else was pure greed. since then the fda panel unanimously recommended approving gatex, but nps pulled back to about $9 and change.

and down here, i think the stock is absolutely worth doing it again, buying, especially when you consider that nps not a one-drug wonder, it has a healthy pipeline, including another orphan drug for a condition called hypoparathyroidism. let's talk to dr. francois nader, president and ceo of nps pharmaceuticals, to get a better sense where his company is headed. welcome to "mad money." >> thank you for inviting me. >> have a seat. i know you watch the show. i'm thrilled for that. i think that people don't understand. they always say, i want the next pfizer. why are you having these orphan drug ceos on? and i've been saying because of how expensive it is to get a new drug through and the orphan drug companies, your kind of company is a much better investment these days than it used to be. >> i cannot agree more. >> okay. >> we look for value. and we look for savings in the health care systems.

and we believe that orphan drugs can exactly do that. no competition, shorter development time, shorter development costs through a met medical need. recipe for success. >> if you're going to do or try to get a blockbuster drug that's going to help millions of people, could be $1 billion company, $1 billion drug, how much does it cost to get through the fda these days? >> the last number i heard, $1.3 billion. >> per mass drug? $1.3 billion only if pfizer could afford to do that. only the new companies can afford to do it. >> exactly. therefore we have to be different exceedingly well and this is our motto at nps. so we have two drugs now in the orphan space. >> okay. >> and we have a history coming directly through our bottom line. de-risking assets, growth opportunity. >> all right. go over that royalty agreement. i did not reference that in the intro.

>> when we sold to amgen years back -- >> okay. >> when it was in early development. >> and that's for -- >> hyperparathyroidism. >> okay. what intrigues me about this, because of that royalty stream, you're not always trolling for dollars, you've got enough money to do what you need to do. >> that's right. it's about a $900 million drug today. we get 10% royalty, we have an advance from amgen, yet we have about $60 million that will flow directly to our bottom line. >> you said that these drugs, orphan drugs, particularly yours, are good for the health care systems, other people then say to me, jim, with twitter -- they say come on, this thing costs $400,000 a year, how can that be good or whatever your current pricing you're thinking of. how can that be good for the health care system? >> well, because these patients unfortunately cost the health care system a lot of money because of that condition. so small in number, but high in cost. and our objective is to reduce

the cost, improve the quality of the life of these patients and treat their condition. >> okay. now go through the process you've just gotten panel approval. that does not mean you've gotten total approval. >> not yet. >> but it is a good course when you have a 12-0 panel, that's a good sign. >> we were thrilled with the outcome of the panel. >> okay. you're obviously more than just this drug, you're pipeline, to mention one. but do you have multiple arms in the fire out 2014, 2015? >> absolutely. we have gattex hopefully will be approved, natpara hopefully will follow. >> good partnerships in all of these? >> north america, we'd like to retain the north american right, license it out. >> okay. well, this is exactly -- you know, look, we want to continue to follow your company. we've done so well talking about these kinds of companies and i think yours is a definite winner. thank you so much. >> thank you very much.

>> dr. francois nader. we were in it, got good news, left it, you go back to it, there's a lot in the pipe here. stay with cramer. thank you. >> thank you very much. hmm, it says here that cheerios helps lower cholesterol as part of a heart healthy diet. that's true. ...but you still have to go to the gym. ♪ the one and only, cheerios

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as the market notches another day of losses and uncertainty begins to soar, it's a bad market, maybe it won't be any good until after the election. well, it's still a perfect time to circle the wagons and stress the importance of defense.

the latest hiccup illustrates how vital it is you have a diversified portfolio. ones that know how to execute. homework and diversification, my friends, are going to get us through to the election. they are the keys to keeping your portfolio secure no matter which direction the market decides to swing. which is why we continue to play am i diversified? and of course, this is my 11th year of playing. how do you do it? you call me, tell me your top five holdings, i tell you whether it's diversified or not. we're starting with a tweet tonight from @garyjolivet. he says i have a diversified portfolio that needs help, i'm a deer in the headlights. down 24%, gld? gld, being the etf for gold, alcoa, caterpillar, lululemon and chipotle. holy cow, let's go to work on this. this is tough. here's the problem, these are actually the same. meaning they're both

high-multiple expensive growth stocks. now, one's in food and one's apparel, but keep that in mind when you try to figure it out. i like gold here, alcoa's an industrial company and cat's an industrial company, and an engine company and these two restaurant -- i could very easily say earth moving, restaurant, apparel, gold, and aluminum, but i'm going to say you've got to get rid of lululemon, because i can't have you in two high-growth multiple stocks, you do that and pick up something, let's buy some abbott labs, that seems like a good stock, make that change tomorrow. let's go to don in texas. >> caller: hi, jim. thanks a lot for taking my call, love your show. >> thank you. >> caller: my stocks are conoco-philips, at&t, energy transfer partners, etp, eli lilly, lly and bank of america,

bc. >> let me go to work on this. eli lily, i would not sell. at&t, people suddenly like verizon more, i would not sell it, good yield, conoco-philips, nat gas comes back, they're a huge producer. bank of america, no thank you, it's a lawsuit-o-rama there. i want you to own wells fargo. why, they're buying back stock and warren buffett bought $1 billion in the last week. energy transfer partners, this is a company where the ceo will belong on the wall of shame if they do an equity offering down here. we've got an oil and gas play, we've got eli lilly, and let's buy some general electric because the stock is down and i think it should be bought. my charitable trust continues to buy it. ted in connecticut, please, ted? >> caller: hey, jim, good afternoon. >> good afternoon to you. >> caller: i'd like to know if

i'm diversified. >> okay. >> caller: my stocks are boeing, b.a., american capital agency, agnc, accenture, acn, apple, aapl, and energy transfer partners, etp. >> okay. all right. let's go to work. let's tackle these two -- these companies are actionalertsplus.com, they are owned by my charitable trust. boeing reporting a magnificent quarter. this stock should have been up too and energy transfer partners, the worst stock i own for charitable trust. apple, own it, don't trade it. american capital, i like the dividend. we have consulting, mlp, aerospace, tech, mortgage reit, and i think that's terrific and i'm willing to keep it, but remember, energy transfer partners, the worst stock that my charitable trust owns. stay with cramer.

going back and forth with my colleague, writes with me at the street and here, and i've got to tell you, we both admit until this election, there's going to be many more days like today. it's torture out the